Gold Silver Ratio

Instantly compare the value of silver in relation to gold.

Some silver investors use the antiquated gold silver ratio which compares the value of silver relative to gold. The gold silver ratio is a measurement that dates back to the time when both silver and gold were used as money. In 1792 the ratio was set at 15 - 1 in the US and France it was set to 15.5 - 1 in 1809. Some silver purists argue these are the true ratios that silver should return to, but neglect the fact these ratios are artificial in that they were mandated by government not free markets or supply and demand. Since silver stopped being legal tender at the turn of the 20th century it's value, and consequently the ratio, has varied considerably over time with the ratio reaching over 90 - 1 in the 1990s. The average value for the 20th century was 47 - 1. Today, the price of silver is largely driven by industrial demand although there have been attempts to corner the market and manipulate the price down by selling silver short. The chart below shows the recent gold silver ratio. The higher the ratio the cheaper silver is per ounce relative to gold.